GLOUCESTER, MA--(Marketwire - Apr 28, 2011) - Varian Semiconductor Equipment Associates,
Inc. ("Varian Semiconductor") (NASDAQ: VSEA) today announced results for
its fiscal year 2011 second quarter ended April 1, 2011.
Revenue for the second quarter of fiscal year 2011 totaled $330.0 million,
compared to revenue of $204.0 million for the same period a year ago.
Varian Semiconductor recorded net income of $82.3 million, or $1.07 per
diluted share during the second quarter of fiscal year 2011, compared to
net income of $38.6 million, or $0.51 per diluted share for the same period
a year ago.
Gary Dickerson, chief executive officer of Varian Semiconductor, said, "We
are increasingly optimistic about our growth potential in 2011 and beyond.
In 2010, we developed new implant applications for semiconductor doping and
physical materials modification. Our Solion implant product also continues
to gain traction with solar cell manufacturers." Dickerson added, "We
continue to commit significant research and development and marketing
resources to the development of new products and markets that leverage our core technology."
Bob Halliday, chief financial officer, provided forward guidance for the
third quarter of fiscal year 2011, "In the second quarter of fiscal year
2011, we reported our highest quarterly revenues, operating margins, net
income and earnings per share. Our revenues of $330.0 million exceeded our
guidance and our earnings per share of $1.07 were at the high end of our
guidance. Third quarter revenue is expected to be between $323.0 and
$333.0 million and earnings per share are anticipated to range from $0.97
to $1.02."
Varian Semiconductor will hold a conference call, broadcast over the
Internet, at 5:30 p.m. Eastern time today to discuss Varian Semiconductor's
operating results and outlook. Access to the call is available through the
investor relations page on Varian Semiconductor's website at www.vsea.com.
Replays will be available via the website for two weeks after the call.
About Varian Semiconductor Equipment Associates, Inc.
Varian Semiconductor is a leading supplier of ion implantation equipment
used in the fabrication of semiconductor chips. Varian Semiconductor's
products are used by chip manufacturers worldwide to produce
high-performance semiconductor devices. Customers have made Varian
Semiconductor the market leader in ion implant because of its
architecturally superior products that lower their costs and improve their
productivity.
Varian Semiconductor provides support, training, and after-market products
and services that help its customers to obtain high utilization and
productivity, reduce operating costs, and extend capital productivity of
customer investments through multiple product generations. Varian
Semiconductor has ranked #1 in the VLSI Research Customer Satisfaction
Survey 13 times over the last 14 years. Varian Semiconductor operates
globally and is headquartered in Gloucester, Massachusetts. More
information can be found on Varian Semiconductor's web site at www.vsea.com. The information contained in Varian Semiconductor's website
is not incorporated by reference into this release, and the website address
is included in this release as an inactive textual reference only.
Note: This press release contains forward-looking statements for purposes
of the safe harbor provisions under The Private Securities Litigation
Reform Act of 1995. For this purpose, statements concerning Varian
Semiconductor's customer demand, business opportunities, guidance for third
quarter fiscal 2011 revenue, earnings per diluted share, financial
performance and any statements using the terms "believes," "anticipates,"
"will," "expects," "plans" or similar expressions, are forward-looking
statements. The forward-looking statements involve a number of risks and
uncertainties. Among the important factors that could cause actual results
to differ materially from those indicated by such forward-looking
statements are: volatility in the semiconductor equipment industry; intense
competition in the semiconductor equipment industry; Varian Semiconductor's
dependence on a small number of customers; fluctuations in Varian
Semiconductor's quarterly operating results; market adoption of Varian
Semiconductor's new products, such as the Solion implant product; Varian
Semiconductor's exposure to risks of operating internationally; uncertain
protection of Varian Semiconductor's patent and other proprietary rights;
Varian Semiconductor's reliance on a limited group of suppliers; Varian
Semiconductor's ability to manage potential growth, decline and strategic
transactions; Varian Semiconductor's reliance on one primary manufacturing
facility; and Varian Semiconductor's dependence on certain key personnel
and Varian Semiconductor's spending on research and development and
marketing and the impact of such spending on product development and sales.
These and other important risk factors that may affect actual results are
discussed in detail under the caption "Risk Factors" in Varian
Semiconductor's Annual Report on Form 10-K for the fiscal year ended
October 1, 2010 and in other reports filed by Varian Semiconductor with the
Securities and Exchange Commission. Varian Semiconductor cannot guarantee
any future results, levels of activity, performance or achievement. Varian
Semiconductor undertakes no obligation to update any of the forward-looking
statements after the date of this release.
VARIAN SEMICONDUCTOR EQUIPMENT ASSOCIATES, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(unaudited)
Three Months Ended Six Months Ended
-------------------- --------------------
April 1, April 2, April 1, April 2,
2011 2010 2011 2010
--------- --------- --------- ---------
Revenue
Product $ 313,096 $ 191,282 $ 572,664 $ 318,743
Service 16,925 12,675 39,938 26,482
--------- --------- --------- ---------
Total revenue 330,021 203,957 612,602 345,225
Cost of revenue 168,250 104,117 311,881 176,698
--------- --------- --------- ---------
Gross profit 161,771 99,840 300,721 168,527
--------- --------- --------- ---------
Operating expenses
Research, development and
engineering 29,787 24,346 56,411 46,074
Marketing, general and
administrative 36,760 31,950 70,277 58,053
--------- --------- --------- ---------
Total operating expenses 66,547 56,296 126,688 104,127
--------- --------- --------- ---------
Operating income 95,224 43,544 174,033 64,400
Interest income, net 780 902 1,483 1,767
Other expense, net (382) (460) (400) (964)
--------- --------- --------- ---------
Income before income taxes 95,622 43,986 175,116 65,203
Provision for income taxes 13,279 5,393 20,919 9,988
--------- --------- --------- ---------
Net income $ 82,343 $ 38,593 $ 154,197 $ 55,215
========= ========= ========= =========
Weighted average shares
outstanding - basic 75,409 74,407 74,837 74,053
Weighted average shares
outstanding - diluted 76,606 75,331 75,955 75,048
Net income per share - basic $ 1.09 $ 0.52 $ 2.06 $ 0.75
Net income per share - diluted $ 1.07 $ 0.51 $ 2.03 $ 0.74
VARIAN SEMICONDUCTOR EQUIPMENT ASSOCIATES, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
April 1, October 1,
2011 2010
----------- -----------
(unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 363,833 $ 235,450
Short-term investments 58,089 60,871
Accounts receivable, net 222,103 223,960
Inventories 212,330 190,538
Deferred income taxes 18,868 20,955
Other current assets 35,689 21,428
----------- -----------
Total current assets 910,912 753,202
Long-term investments 133,701 101,332
Property, plant and equipment, net 72,635 68,140
Deferred income taxes 5,364 4,363
Other assets 15,311 15,173
----------- -----------
Total assets $ 1,137,923 $ 942,210
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 65,334 $ 53,529
Accrued expenses and other current liabilities 35,393 46,739
Deferred revenue 58,079 46,707
Income taxes payable 10,924 7,476
Product warranty 12,284 8,627
----------- -----------
Total current liabilities 182,014 163,078
Long-term accrued expenses and other long-term
liabilities 91,106 81,130
----------- -----------
Total liabilities 273,120 244,208
Stockholders' equity
Common stock 978 958
Capital in excess of par value 709,273 654,458
Less: Cost of treasury stock (776,938) (732,859)
Retained earnings 929,832 775,635
Accumulated other comprehensive income (loss) 1,658 (190)
----------- -----------
Total stockholders' equity 864,803 698,002
----------- -----------
Total liabilities and stockholders'
equity $ 1,137,923 $ 942,210
=========== ===========